The Court of Appeal will rule later on the appeal by the Motor Insurers' Bureau of Ireland (MIBI) against a finding it is liable for hundreds of outstanding claims following the collapse of Setanta Insurance in 2014.

The MIBI argues it should not have to pay out on the claims and wants the court to set aside a High Court decision it is liable in respect of claims against persons insured with Setanta at the time of its liquidation.

The Law Society has opposed the appeal. It says it was envisaged, in all the various agreements governing the MIBI since it was established in the 1950s, that it would have to pay out in the event one of its members became insolvent.

The case has important implications for motor insurance premia as well as parties involved in claims concerning Setanta.

The appeal, heard by the president of the Court of Appeal, Mr Justice Sean Ryan, Ms Justice Mary Finlay Geoghegan and Mr Justice Gerard Hogan, concluded on Thursday after the court heard submissions from the parties.

Urgency

Reserving judgment, Mr Justice Ryan said the court “appreciated the urgency” of the matter and would try to deliver its decision “as soon as possible”.

The High Court decided the MIBI had to pay out after it was asked to determine whether the MIBI, which is operated under the terms of an agreement between the Government and those companies underwriting motor insurance in Ireland to deal with claims related to uninsured drivers, or the Insurance Compensation Fund, used up to now to cover claims of insolvent insurance companies, was liable for the claims.

Following Setanta’s liquidation, some 1,750 claims by and against Setanta policyholders remained alive.

In its appeal, the MIBI claims the High Court decision raises “very significant difficulties” for the MIBI and its members.

The case was initially brought by the Accountant of the Courts of Justice who has statutory responsibility for administering the Insurance Compensation Fund. The High Court subsequently directed the Law Society to act as the claimant and the MIBI should be the respondent. The Accountant of the Courts of Justice is neutral in the proceedings.

Setanta was a member of the MIBI, which covers the cost of claims related to uninsured drivers claimed through levies imposed on customers.